What is the bonds value

Assignment Help Financial Management
Reference no: EM13727425

A US Industries bond has an 8 percent coupon rate and a $1,000 face value. Interest is paid semi-annually, and the bond has 20 years to maturity. If investors require a 10 percent yield to maturity, what is the bond’s value?

Reference no: EM13727425

Questions Cloud

Product forecasts and processing times on the machines : Operations management Product forecasts and processing times on the machines are as follows
Calculate debt ratio and equity ratio : Binomial Tree Farm’s financing includes $6.7 million of bank loans. Its common equity is shown in Binomial’s Annual Report at $6.84 million. It has 500,000 shares of common stock outstanding, which trade on the Wichita Stock Exchange at $16.3 per sha..
What price must you expect frostville stock : Assume Corporation has a current stock price of $50 and will pay a $1.5 dividend in one year; its equity cost of capital is 12%. What price must you expect Frostville stock to sell for immediately after the firm pays the dividend in one year to justi..
Prepare a product launch plan : Create a product launch plan to include the following components in plan: roduct identification and Justification for your choice of product
What is the bonds value : A US Industries bond has an 8 percent coupon rate and a $1,000 face value. Interest is paid semi-annually, and the bond has 20 years to maturity. If investors require a 10 percent yield to maturity, what is the bond’s value?
Bill gates is interested in developing vaccines : Bill Gates is interested in developing vaccines. His foundation supports the Global Alliance for Vaccine Development (GAVI). He would be very interested in funding projects that provide novel delivery mechanisms for vaccines. Frederica has alwa..
The immediate dilution potential for this new stock issue : Louisiana Timber Company currently has 5 million shares of stock outstanding and will report earnings of $9 million in the current year. The company is considering the issuance of 1 million additional shares that will net $40 per share to the corpora..
Summarize what you think are the most important pieces : Summary and paraphrase this paragraph- summarize what you think are the most important pieces of information that you gleaned from the textbook- read the book closely and put it in your own words.
Principal of the loan and how much will go toward interest : You have just taken out a $22,000 car loan with a 6% APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward inte..

Reviews

Write a Review

Financial Management Questions & Answers

  What is your estimate of stock bs price

The current dividend is $1.50, its current price is $15.90. You are an analyst and believe that the required return on Stock B is the same as that on Stock A. If Stock B pays a constant dividend of $ 2, what is your estimate of Stock B's price?

  Summarize your findings from the articles in a two- to

summarize your findings from the articles in a two- to three-page paper excluding title and references pages. the paper

  Explain inappropriate tool for looking at market risk

This will take a little research on the Internet. Why may the bell curve be an inappropriate tool for looking at market risk? Find out what Mandelbrot (The Mis Behvior of Markets) and Taleb (The Black Swan) have to say.

  Local Option Income Tax

We expect to receive $6.75 million this year from our Local Option Income Tax (LOIT). The state collects the tax and sends equal payments to us at the end of each quarter. Assume we use a normal calendar year for accounting purposes. How much money w..

  Firm has issued cumulative preferred stock

A firm has issued cumulative preferred stock with a $50 par value and a 8 percent annual dividend. For the past two years, the board of directors has decided not to pay a dividend. The preferred stockholders must be paid ________ prior to paying the ..

   ay be defined as a measure of uncertainty in set of

1 the value of a financial asset is the .a present value of all of the future cash flows that will be receivedb sum of

  Yield to call and yield to maturity

Ten years ago the Singleton Company issued 22-year bonds with a 10% annual coupon rate at their $1,000 par value. The bonds had a 9% call premium, with 5 years of call protection. Today Singleton called the bonds. Compute the realized rate of return ..

  Brown ltd operates outdoor amusement centres in a number of

brown ltd operates outdoor amusement centres in a number of country towns. the company has decided to build another

  Prepare the scope and objectives of the risk management

in this assignment you will create a risk management plan. you have a budget of 100000 and a timeline of six 6 months

  What is the net working capital for 2012

What is the Net Working Capital for 2012 and what is it for 2011 - what is the Change in Net Working Capital (NWC)?

  What is the yield to maturity-coupon rate on the bond

A municipal bond has 5 years until maturity and sells for $5,156. If the coupon rate on the bond is 5.88 percent, what is the yield to maturity? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

  Interest versus dividend income during the year just ended

Interest versus dividend income During the year just ended

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd